New Hampshire lottery taxes: federal tax only
New Hampshire was the first state to run a modern lottery, in 1964. It does not tax wages, and its old tax on interest and dividends has been repealed, so lottery prizes are taxed by the IRS only.
Calculate a New Hampshire jackpot
Take-home pay on a lump-sum prize in New Hampshire
The table applies the top federal rate of 37% plus no state tax. Amounts are the cash (lump-sum) value you receive, not the advertised annuity jackpot.
| Cash prize | Federal (37%) | State | You keep |
|---|---|---|---|
| $1.00M | −$370,000 | $0 | $630,000 |
| $10.00M | −$3.70M | $0 | $6.30M |
| $100.00M | −$37.00M | $0 | $63.00M |
| $500.00M | −$185.00M | $0 | $315.00M |
| $1.00B | −$370.00M | $0 | $630.00M |
Federal figure is the total owed at the top bracket. At claim time only 24% is withheld; the rest is due when you file. Smaller prizes can fall into lower brackets, so the real federal bill may be less.
What is withheld when you claim
Prizes over $5,000 have 24% federal tax withheld. Jackpot winners should expect to owe more when they file, up to the 37% top rate.
Massachusetts and Vermont neighbors
Many tickets in southern New Hampshire are bought by Massachusetts residents. New Hampshire will not tax their prize, but Massachusetts will. New Hampshire residents who buy in Massachusetts may have Massachusetts tax withheld as nonresidents.
Privacy
New Hampshire winners have been allowed to claim in ways that limit publicity, such as through a trust. Rules can change, so ask the lottery and a lawyer before you sign the back of the ticket.
Common questions
Does New Hampshire tax lottery winnings?
No. New Hampshire has no personal income tax on wages or lottery prizes.
How much do I keep from a $1 billion cash prize in New Hampshire?
About $630 million at the top federal rate of 37%.